Foto: iStock

Trust

Foto: iStock

While trust and satisfaction in life are as closely related as trust and economic growth, mistrust can provoke or aggravate crises – such as the Euro crisis.

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A strong society is based on sound social capital – trust, relationships and norms. Trust in the political system, the economy, and societal structures encourage economic growth and prosperity. It enables economic exchanges such as work contracts and purchases. In companies, a corporate culture based on trust can lead to a better reputation and long-term success, and improve the employees’ satisfaction.

Trust is hardly missed until it’s gone. However, the Euro crisis has demonstrated what happens when trust fades inside the banking sector: Increasingly mistrusting each other, banks have made lending more difficult. As a consequence, financing costs for companies have increased and investments stagnated, slowing down economic growth in Europe. The trust index analyses how trust has developed in Europe and how different countries compare today in terms of trust levels.

Dominik H. Enste

Prof. Dr. Dominik H. Enste

Head of the Research Unit Behavioral Economics and Business Ethics

Tel+49 221 4981-730

Mailenste@iwkoeln.de

@DominikEnste

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Theresa Eyerund

Theresa Eyerund

Economist in the Project Future of Work

Tel+49 221 4981-783

Maileyerund@iwkoeln.de

@TheresaEyerund

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Lena Suling

Economic Research Consultant of the IW Akademie

Tel+49 221 4981-816

Mailsuling@iwkoeln.de

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